35884 Federal Register / Vol. 63, No. 126 /Wednesday, July 1, 1998 / Proposed Rules

Director shall exclude employees if it is

determined that such exclusion is

required because of a conflict of interest

or appearance of a conflict of interest or

because of the President’s or Vice

President’s constitutional

responsibilities, in addition to the

standards set out in 5 U.S.C. 7112.

PART 2422—REPRESENTATION

PROCEEDINGS

1. The authority citation for part 2422

is revised to read as follows:

Authority: 3 U.S.C. 431; 5 U.S.C. 7134.

2. In § 2422.34, paragraph (b) is

revised to read as follows:

§ 2422.34 Rights and obligations during

the pendency of representation

proceedings.

* * * * *

(b) Unit status of individual

employees. Notwithstanding paragraph

(a) of this section and except as

otherwise prohibited by law, a party

may take action based on its position

regarding the bargaining unit status of

individual employees, pursuant to 3

U.S.C. 431(d)(2), 5 U.S.C. 7103(a)(2),

and 7112(b) and (c): Provided, however,

that its actions may be challenged,

reviewed, and remedied where

appropriate.

PART 2423—UNFAIR LABOR

PRACTICE PROCEEDINGS

1. The authority citation for part 2423

is revised to read as follows:

Authority: 3 U.S.C. 431; 5 U.S.C. 7134.

2. In § 2423.41, paragraph (c) is

amended to read as follows:

§ 2423.41 Action by the Authority;

compliance with Authority decisions and

orders.

* * * * *

(c) Authority’s order. Upon finding a

violation, the Authority shall, in

accordance with 5 U.S.C. 7118(a)(7),

issue an order directing the violator, as

appropriate, to cease and desist from

any unfair labor practice, or to take any

other action to effectuate the purposes

of the Federal Service LaborManagement Relations Statute. With

regard to employees covered by 3 U.S.C.

431, upon finding a violation, the

Authority’s order may not include an

order of reinstatement, in accordance

with 3 U.S.C. 431(a).

* * * * *

PART 2470—GENERAL

1. The authority citation for part 2470

is revised to read as follows:

Authority: 3 U.S.C. 431; 5 U.S.C. 7119,

7134.

2. Section 2470.1 is revised to read as

follows:

§ 2470.1 Purpose.

The regulations contained in this

subchapter are intended to implement

the provisions of section 7119 of title 5

and, where applicable, section 431 of

title 3 of the United States Code. They

prescribe procedures and methods

which the Federal Service Impasses

Panel may utilize in the resolution of

negotiation impasses when voluntary

arrangements, including the services of

the Federal Mediation and Conciliation

Service or any other third-party

meditation, fail to resolve the disputes.

It is the policy of the Panel to encourage

labor and management to resolve

disputes on terms that are mutually

agreeable at any stage of the Panel’s

procedures.

3. In § 2470.2, paragraph (a) is revised

to read as follows:

§ 2470.2 Definitions.

(a) The terms agency, labor

organization, and conditions of

employment as used herein shall have

the meaning set forth in 5 U.S.C.

7103(a). When used in connection with

3 U.S.C. 431, the term agency as used

in the Panel’s regulations means an

employing office as defined in 3 U.S.C.

401(a)(4).

* * * * *

PART 2472—IMPASSES ARISING

PURSUANT TO AGENCY

DETERMINATIONS NOT TO

ESTABLISH OR TO TERMINATE

FLEXIBLE OR COMPRESSED WORK

SCHEDULES

1. The authority citation for part 2472

is revised to read as follows:

Authority: 5 U.S.C. 6131.

2. Section 2472.1 is revised to read as

follows:

§ 2472.1 Purpose.

The regulations contained in this part

are intended to implement the

provisions of section 6131 of title 5 of

the United States Code, but are not

applicable to actions covered by section

431 of title 3 of the United States Code.

They prescribe procedures and methods

which the Federal Service Impasses

Panel may utilize in the resolution of

negotiations impasses arising from

agency determinations not to establish

or to terminate flexible and compressed

work schedules.

Dated: June 26, 1998.

Kevin Kopper,

Director, Budget & Finance Division.

[FR Doc. 98–17503 Filed 6–30–98; 8:45 am]

BILLING CODE 6727–01–P

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. 98–ANE–29–AD]

Airworthiness Directives; First

Technology Fire and Safety Ltd. Toilet

Compartment Fire Extinguishers

AGENCY: Federal Aviation

Administration, DOT.

ACTION: Notice of proposed rulemaking

(NPRM).

SUMMARY: This document proposes the

adoption of a new airworthiness

directive (AD) that is applicable to First

Technology Fire and Safety Ltd. toilet

compartment fire extinguishers. This

proposal would require inspection of

suspect fire extinguishers for leakage,

and removal from service and

replacement with serviceable parts if

found leaking. This proposal is

prompted by reports of leakage at the

fire extinguisher’s eutectic tip due to a

design change. The actions specified by

the proposed AD are intended to

prevent fire extinguisher failure due to

leakage, which in the event of a toilet

compartment fire could result in an

uncontained fire and damage to the

aircraft.

DATES: Comments must be received by

August 31, 1998.

ADDRESSES: Submit comments in

triplicate to the Federal Aviation

Administration (FAA), New England

Region, Office of the Regional Counsel,

Attention: Rules Docket No. 98–ANE–

29–AD, 12 New England Executive Park,

Burlington, MA 01803–5299. Comments

may also be submitted to the Rules

Docket by using the following Internet

address: ‘‘9-adengineprop@faa.dot.gov’’. Comments

may be inspected at this location

between 8:00 a.m. and 4:30 p.m.,

Monday through Friday, except Federal

holidays.

The service information referenced in

the proposed rule may be obtained from

Percival Aviation Ltd., The Sidings,

Knowle, Fareham, Hampshire PO17 5LZ

England; telephone 011 44 1329 833814,

fax 011 44 1329 834013. This

information may be examined at the

FAA, New England Region, Office of the

Regional Counsel, 12 New England

Executive Park, Burlington, MA.
Federal Register / Vol. 63, No. 126 /Wednesday, July 1, 1998 / Proposed Rules 35885

FOR FURTHER INFORMATION CONTACT:

Terry Fahr, Aerospace Engineer, Boston

Aircraft Certification Office, FAA,

Engine and Propeller Directorate, 12

New England Executive Park,

Burlington, MA 01803–5299; telephone

(781) 238–7155, fax (781) 238–7199.

SUPPLEMENTARY INFORMATION:

Comments Invited

Interested persons are invited to

participate in the making of the

proposed rule by submitting such

written data, views, or arguments as

they may desire. Communications

should identify the Rules Docket

number and be submitted in triplicate to

the address specified above. All

communications received on or before

the closing date for comments, specified

above, will be considered before taking

action on the proposed rule. The

proposals contained in this notice may

be changed in light of the comments

received.

Comments are specifically invited on

the overall regulatory, economic,

environmental, and energy aspects of

the proposed rule. All comments

submitted will be available, both before

and after the closing date for comments,

in the Rules Docket for examination by

interested persons. A report

summarizing each FAA-public contact

concerned with the substance of this

proposal will be filed in the Rules

Docket.

Commenters wishing the FAA to

acknowledge receipt of their comments

submitted in response to this notice

must submit a self-addressed, stamped

postcard on which the following

statement is made: ‘‘Comments to

Docket Number 98–ANE–29–AD.’’ The

postcard will be date stamped and

returned to the commenter.

Availability of NPRMs

Any person may obtain a copy of this

NPRM by submitting a request to the

FAA, New England Region, Office of the

Regional Counsel, Attention: Rules

Docket No. 98–ANE–29–AD, 12 New

England Executive Park, Burlington, MA

01803–5299.

Discussion

The Civil Aviation Authority (CAA),

which is the airworthiness authority for

the United Kingdom (UK), recently

notified the Federal Aviation

Administration (FAA) that an unsafe

condition may exist on certain First

Technology Fire and Safety Ltd. toilet

compartment fire extinguishers. The

CAA advises that they have received

reports of leakage at the fire

extinguisher’s eutectic tip due to a

design change. This condition, if not

corrected, could result in fire

extinguisher failure due to leakage,

which in the event of a toilet

compartment fire could result in an

uncontained fire and damage to the

aircraft.

First Technology Fire and Safety Ltd.

has issued Service Bulletin (SB) No. 26–

110, dated January 1998, that specifies

procedures for inspection of suspect fire

extinguishers for leakage. The CAA

classified this SB as mandatory and

issued AD 007–11–97 in order to assure

the safety of these fire extinguishers in

the UK.

These fire extinguishers are

manufactured in the UK and are

certificated for operation in the United

States under the provisions of Section

21.29 of the Federal Aviation

Regulations (14 CFR 21.29) and the

applicable bilateral airworthiness

agreement. Pursuant to this bilateral

airworthiness agreement, the CAA has

kept the FAA informed of the situation

described above. The FAA has

examined the findings of the CAA,

reviewed all available information, and

determined that AD action is necessary

for products of this type design that are

certificated for operation in the United

States.

Since an unsafe condition has been

identified that is likely to exist or

develop on other fire extinguishers of

the same type design registered in the

United States, the proposed AD would

require, within 3 months after the

effective date of this AD, inspection of

suspect fire extinguishers for leakage,

and removal from service and

replacement with serviceable parts if

found leaking. The UK CAA AD

specified a second inspection after the

initial inspection; however, the FAA has

determined that a second inspection is

unnecessary due to the time that has

passed from the publication of the UK

CAA AD to the publication of this FAA

NPRM. The actions would be required

to be accomplished in accordance with

the SB described previously.

There are approximately 1,500 fire

extinguishers of the affected design

installed on the worldwide fleet. There

are an unknown number of fire

extinguishers installed on aircraft of

U.S. registry. The FAA estimates that it

would take approximately 3 minutes per

fire extinguisher to accomplish the

proposed actions, and that the average

labor rate is $60 per work hour. The

manufacturer has advised the CAA that

replacement parts would be provided at

no charge to the operator. Based on

these figures, the total cost impact of the

proposed AD on worldwide operators is

estimated to be $4,500.

The regulations proposed herein

would not have substantial direct effects

on the States, on the relationship

between the national government and

the States, or on the distribution of

power and responsibilities among the

various levels of government. Therefore,

in accordance with Executive Order

12612, it is determined that this

proposal would not have sufficient

federalism implications to warrant the

preparation of a Federalism Assessment.

For the reasons discussed above, I

certify that this proposed regulation (1)

is not a ‘‘significant regulatory action’’

under Executive Order 12866; (2) is not

a ‘‘significant rule’’ under the DOT

Regulatory Policies and Procedures (44

FR 11034, February 26, 1979); and (3) if

promulgated, will not have a significant

economic impact, positive or negative,

on a substantial number of small entities

under the criteria of the Regulatory

Flexibility Act. A copy of the draft

regulatory evaluation prepared for this

action is contained in the Rules Docket.

A copy of it may be obtained by

contacting the Rules Docket at the

location provided under the caption

ADDRESSES.

List of Subjects in 14 CFR Part 39

Air transportation, Aircraft, Aviation

safety, Safety.

The Proposed Amendment

Accordingly, pursuant to the

authority delegated to me by the

Administrator, the Federal Aviation

Administration proposes to amend part

39 of the Federal Aviation Regulations

(14 CFR part 39) as follows:

PART 39—AIRWORTHINESS

DIRECTIVES

1. The authority citation for part 39

continues to read as follows:

Authority: 49 U.S.C. 106(g), 40113, 44701.

§ 39.13 [Amended]

2. Section 39.13 is amended by

adding the following new airworthiness

directive:

First Technology Fire and Safety Ltd.:

Docket No. 98–ANE–29–AD.

Applicability: First Technology Fire and

Safety Ltd. toilet compartment fire

extinguisher, identified by serial and model

number in First Technology Fire and Safety

Ltd. Service Bulletin (SB) No. 26–110, dated

January 1998. These fire extinguishers are

installed on but not limited to Airbus A320,

A330, A340; British Aerospace Bae 146,

Bombardier CL–600–2B19 (CRJ), Dornier 328

Embraer EMB 145, and all Fokker Series

aircraft.

Note 1: This airworthiness directive (AD)

applies to each fire extinguisher identified in

the preceding applicability provision,
35886 Federal Register / Vol. 63, No. 126 /Wednesday, July 1, 1998 / Proposed Rules

1 17 CFR 210.3–03.

2 17 CFR 210.12–16.

3 17 CFR Part 210.

4 17 CFR 229.101.

5 17 CFR 229.102.

6 17 CFR Part 229.

7 17 CFR240.14a–101.

8 17 CFR249.220f.

9Release No. 33–5893 (December 23, 1977) [42

FR 65554].

10Section 101 of the Codification of Financial

Reporting Policies. The Commission initially issued

its administrative policy concerning financial

statements in 1938 and updated it in 1973 to

recognize the establishment of the FASB.

11SFAS No. 14, ¶ 10.a.

regardless of whether it has been modified,

altered, or repaired in the area subject to the

requirements of this AD. For fire

extinguishers that have been modified,

altered, or repaired so that the performance

of the requirements of this AD is affected, the

owner/operator must request approval for an

alternative method of compliance in

accordance with paragraph (b) of this AD.

The request should include an assessment of

the effect of the modification, alteration, or

repair on the unsafe condition addressed by

this AD; and, if the unsafe condition has not

been eliminated, the request should include

specific proposed actions to address it.

Compliance: Required as indicated, unless

accomplished previously.

To prevent fire extinguisher failure due to

leakage, which could result in an

uncontained fire and damage to the aircraft,

accomplish the following:

(a) Within 3 months after the effective date

of this AD, perform a one time inspection of

fire extinguishers for leakage, and replace

leaking fire extinguishers with serviceable

parts, in accordance with First Technology

Fire and Safety Ltd. SB No. 26–110, dated

January 1998.

(b) An alternative method of compliance or

adjustment of the compliance time that

provides an acceptable level of safety may be

used if approved by the Manager, Boston

Aircraft Certification Office. Operators shall

submit their request through an appropriate

FAA Principal Maintenance Inspector, who

may add comments and then send it to the

Manager, Boston Aircraft Certification Office.

Note 2: Information concerning the

existence of approved alternative methods of

compliance with this AD, if any, may be

obtained from the Boston Aircraft

Certification Office.

(c) Special flight permits may be issued in

accordance with sections 21.197 and 21.199

of the Federal Aviation Regulations (14 CFR

21.197 and 21.199) to operate the aircraft to

a location where the requirements of this AD

can be accomplished.

Issued in Burlington, Massachusetts, on

June 23, 1998.

Dated: June 23, 1998.

Jay J. Pardee,

Manager, Engine and Propeller Directorate,

Aircraft Certification Service

[FR Doc. 98–17416 Filed 6–30–98; 8:45 am]

BILLING CODE 4910–13–P

SECURITIES AND EXCHANGE

COMMISSION

17 CFR Parts 210, 229, 240 and 249

[Release Nos. 33–7549; 34–40126; File No.

S7–17–98]

RIN 3235–AH43

Segment Reporting

AGENCY: Securities and Exchange

Commission.

ACTION:Proposed Rules.

SUMMARY: The Commission today

proposes technical amendments to

conform our reporting requirements

with the Financial Accounting

Standards Board’s (‘‘FASB’’) recently

adopted Statement of Financial

Accounting Standards (‘‘SFAS’’) No.

131, governing disclosures relating to a

business enterprise’s operating

segments.

DATES:We should receive comments by

July 31, 1998.

ADDRESSES:Please send three copies of

your comment letter to Jonathan G.

Katz, Secretary, U.S. Securities and

Exchange Commission, 450 Fifth Street,

N.W., Washington, D.C. 20549.

Interested persons also may submit

comments electronically at the

following e-mail address: rulecomments@sec.gov. All comment letters

should refer to File No. S7–17–98;

please include this file number in the

subject line if you use e-mail. Anyone

can inspect and copy the comment

letters in our public reference room at

450 Fifth Street, N.W., Washington, D.C.

20549. We will post electronically

submitted comment letters on the

Commission’s Internet Web Site

(www.sec.gov).

FOR FURTHER INFORMATION CONTACT:

James R. Budge, Special Counsel,

Division of Corporation Finance, at

(202) 942–2950, Louise M. Dorsey,

Assistant Chief Accountant, Division of

Corporation Finance, at (202) 942–2960,

or Robert F. Lavery, Assistant Chief

Accountant, Office of the Chief

Accountant, at (202) 942–4400, U.S.

Securities and Exchange Commission,

450 Fifth Street, N.W., Washington, D.C.

20549.

SUPPLEMENTARY INFORMATION: The

Commission today proposes technical

amendments to Rules 3–03 1 and 12–16 2

of Regulation S–X,3 Items 101 4 and

102 5 of Regulation S–K,6 and Schedule

14A 7 in order to conform our reporting

requirements with the FASB’s recently

adopted SFAS No. 131. We also propose

to make consistent changes to Form 20–

F 8 and to Sections 501.06 and 503 of the

Codification of Financial Reporting

Policies (‘‘CFRP’’).

I. Background

In 1976, the FASB issued SFAS No.

14, ‘‘Financial Reporting for Segments

of a Business Enterprise.’’ SFAS No. 14

required corporations to disclose certain

financial information by ‘‘industry

segment’’ as defined in the statement

and by geographic area. In December

1977, we adopted amendments to our

rules to integrate the information to be

furnished under SFAS No. 14 with the

narrative and financial disclosures

required in various disclosure forms.9

After extensive deliberations,

including solicitation of public

comments, the FASB adopted a number

of fundamental changes to its standards

for segment reporting by publishing

SFAS No. 131 in June of 1997. SFAS

No. 131 superseded SFAS No. 14 and

established standards for reporting

information about ‘‘operating segments’’

of an enterprise rather than following

the ‘‘industry segment’’ standards that

were in place previously. The

Commission today proposes a number

of technical changes to its reporting

requirements to accommodate these

recent modifications. This is in keeping

with our long-standing position that we

will look to the private sector for the

promulgation of generally accepted

accounting principles (‘‘GAAP’’),10 and

furthers our goal of integrating existing

accounting information into the

narrative disclosure in documents

mandated by the federal securities laws.

This release explains in detail the

proposed changes.

II. Proposed Rule Changes

A. Operating Segment Disclosure

SFAS No. 14 required, and the

Commission’s current rules and forms

require, disclosure along ‘‘industry

segment’’ lines. An ‘‘industry segment,’’

as defined by SFAS No. 14, was ‘‘a

component of an enterprise engaged in

providing a product or service or a

group of related products and services

primarily to unaffiliated customers

* * * for a profit.’’ 11 Recognizing that

businesses often evaluate their

operations using criteria not necessarily

related to the products or services

offered to the public, the FASB replaced

the industry segment reporting standard

with one that requires businesses to

report financial information on the basis

of ‘‘operating segments.’’ Under the new

accounting standard, an operating

segment is a component of a business,

for which separate financial information

is available, that management regularly

evaluates in deciding how to allocate